Thursday, November 20, 2014

Saving For A Rainy Day: Tips To Ensure You Avoid Any Unexpected Household Costs (Guest Post)

No matter how much you save, there will always come a time where you have to spend for something you didn’t expect. This is why it is important to have some money saved up, so that you don’t have to worry about spending for something that you did not plan for. Here are some tips on how you can avoid any unexpected household costs.

Insurance
Getting insurance is one way to avoid large costs when something happens. This can be home insurance, car insurance, and even health insurance for dogs. You may be paying plenty of money to get the coverage that you need, but at least you won’t have to spend a lot if something happens. Depending on the insurance provider and the insurance plan that you choose, you can save a lot of money if you have insurance. By doing this, you are making sure that you are lessening the amount of money you shell out for unexpected events.

Assess your unexpected expenses. Another thing you can do is to assess the unexpected expenses that you had the past year. This includes Christmas gifts, birthdays, dental bills, home repairs, and other things that you didn’t plan for. If you have an idea on how much you spend on unexpected household costs, you can adjust your budget and savings for the following year to make sure that you have everything covered and that you have the funds to cover an unexpected expense.

Save a few bucks a day. Even saving $5 a day for an entire year can be helpful when you experience untoward incidents that you have to pay for. $5 a day translates to $1,825 a year and that should cover at least some of the unexpected household costs that you may have. Furthermore, if you don’t have anything to spend on, then you now have more money in the bank. Saving for something unexpected is always better than not having the money you need in case something happens.

Revisit your budget. Another way to save for unexpected household costs is by revisiting your household budget and getting rid of items that you can give up. You may have daily activities or expenses that you can do without. If you try to live within your means and get only your needs and not your wants, you are sure to save a ton of money that you can set aside for unexpected household costs.

Think about the purpose of your savings. Once you have enough savings set aside for unexpected events, it can be quite easy to spend it especially if you have something in mind that you want to buy. Whatever you do, make sure that you don’t spend money set aside for something else. It is always better to be prepared for whatever may come that regretting your spending later on. Focus on the purpose of your savings.

These are some of the tips you can follow in order to make sure that you have saved some money for a rainy day. If you are prepared for the worst, then there are less problems to think about for your future.